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Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings.
One of the much-discussed potential outcomes of the NAR commission settlement is the possibility that more buyers will reach out directly to the listing agent when shopping for a home, rather than working with, and paying out of pocket, a buyer’s agent.
At the same time, many agents and brokers don’t engage with or promote dual agency — and in some states, they’re not allowed to. However, refusing to work with both sides of a transaction may mean blowing a deal under the new paradigm.
So as we prepare for our evolving industry to make yet another shift, we wanted to know: Do you plan on doing more double-ended transactions? Have you handled both sides of the deal before, and, if so, how did you keep both clients happy? Is dual agency allowed in your state and, if so, what’s your view on it? Here are your responses:
- Yes (multiple)
- No (multiple)
- Possibly
- Definitely
- No. Let’s not swap one approach that led to a costly lawsuit with a different approach that will almost certainly lead to the same outcome
- Yes. I love the challenge of this type of transaction and know I have no problem with fiduciary responsibility and have always been able to get the best deal for both parties and have always succeeded with two very happy parties
- Absolutely will not. I see the next big lawsuit on just this and it will be huge
- No. I have never been a fan of dual agency. There is too much risk in violating fiduciary responsibilities to either client
- I am the compliance officer in a brokerage that does not permit our agents to practice dual agency. If our agent is the listing agent, then the buyer would be unrepresented. We are bracing for more of this and preparing paperwork so the buyer absolutely knows they are not represented
- With investors, I find it easier. With owner occupants selling, emotion is involved and I prefer to keep it separate
- I have done a number of dual transactions in my career. I anticipate that more buyers may just come directly to the listing broker, especially in cases where the seller doesn’t pay the buyer broker commission. It isn’t in the buyer’s best interest; however, buyers in the under $4 million market are much more sensitive to fees. An excellent buyer’s broker is more than worth the fee! In Manhattan, real estate transactions are complex and deep market knowledge is a very valuable asset
- Absolutely not. I think a lot of lawsuits will stem from dual agency. More problems before it gets better!
- No. I think dual agency should be made illegal in all 50 states as it is a conflict of interest for all parties
- No, because that is the next thing the attorneys will come after us for
- I do not. I have done it before. Both parties deserve representation and I think it would be difficult to “represent” both since it is likely that an agent already has an established relationship with one or the other
- Yes, but with major CYA
- No, I do not. If a buyer contacts me with the intention of purchasing a property I have listed, I will not enter into a single agent, limited representation transaction. The buyer will be unrepresented
- I highly discourage pure dual agency in our firm. There are huge liabilities for the firm and the agents involved. How does a listing agent go from being an advocate for their sellers to a completely neutral party in the transaction? According to our rules in North Carolina, they cannot advise their clients (both buyer and seller). How does this help either client? I can see how a seller might be OK with it since they have been part of the process before, if not many times. But a first-time homebuyer has lots of questions and seeks advice. Our duty is to our clients to be able to give advice
What did we miss? Please share your thoughts in the comments section below.